For Retirement, Employees Prefer Steady Paycheck over Managing Their Own Investments
Americans prefer companies over government as their partner of choice
This is one of the latest findings from the Role of the
But employees want a partner in their retirement planning and they want their company to fulfill that role, as they were six times more likely to want companies to be more involved – not less – in providing for their retirement security in the next five to 10 years (61% vs. 9%).
While most individuals will likely have retirement savings through a combination of individual accounts, employer-sponsored solutions and
“Employees recognize the important role their employers can play in planning for retirement,” said
Some interesting generational differences – and similarities – exist as well. Despite being the generation closest to retirement, only 14% of Baby Boomers say they want the government to be primarily responsible for retirement security, while 24% of Millennials feel that way. There is no significant difference between Millennials’ and Boomers’ preferences for steady income in retirement – both groups equally favor a set retirement check from their employer rather than receiving money from their employer to invest on their own.
This similarity shows the recognition of the preference for a guaranteed retirement income, a paycheck in the form of a pension payment from a traditional defined benefit plan, or an annuity purchased using retirement savings from a defined contribution plan, such as a 401(k) plan. The traditional defined benefit plan is fading from the workplace and a less common offering for younger workers, while defined contribution plans are more prevalent for workers today.
Through its Employee Benefit Trends Study (EBTS), now in its 16th year,
Research Methodology
MetLife’s survey on The Role of the Company was conducted in
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